Google could see its revenue from mobile ads rise to $5.8 billion this year
Interestingly enough, Google's CEO Larry Page back in October said that Google's annualized mobile ad revenue was running at a $2.5 billion a year pace. During the company's conference call last week after reporting Q4 earnings, Page said that mobile ad revenue is now running at a $5 billion annualized pace, which certainly makes Friedland's methodology look accurate.
As Google's mobile ad revenues continue to rise, it becomes a larger and larger component of the Mountain View based firm's annual take. According to Friedland, the percentage of Google's annual revenue coming from mobile ads has risen from 3% in 2010 to 7% last year and is projected to reach 13% of Google's revenue. And it won't stop this year. Cowen's analyst sharpened his pencil and figured out that by 2016, mobile will be a $20 billion business for the company and amount to 26% of the company's annual take.
The Cowen analyst believes that Google could raise the amount it gets from each handset to $8. To put that in perspective, the company is believed by Friedland to bring in $30 a year in revenue for each PC. As we reported, Oracle filed a lawsuit in which it claimed that Google makes $14 annually from each Android phone activated or $10 million a day, a figure that Oracle might have inflated due to the legal action it is taking.
Keep in mind that Google doesn't break out financials for the mobile division, so these numbers all come from Friedland's abacus. How did he arrive at the above calculations? He estimates the total number of smartphones and tablets and then figures out what percent belongs to Google and starts his figuring from that point.
source: CowenandCo. via MobileCrunch
2. ivanko34 (Posts: 617; Member since: 04 Sep 2011)
What is really nice is that money is not taken from the pocket of Android users
3. Leo_MC (Posts: 394; Member since: 02 Dec 2011)
I am starting to dislike adds everywhere on my phone, adds on youtube, gmail etc, adds, adds, adds.
If I wanted adds, I would have looked at my TV.
I understand the need of profit but make adds more expensive, don't bomb the user with more and more and more... adds.
4. remixfa (Posts: 13902; Member since: 19 Dec 2008)
then buy the apps. bam, no more ads. if you want the app for free, then bam, you get ads. You may be annoyed, but the app developer and the people that put the time into keeping software on your phone deserve to be paid. If you dont buy the app, the only way they get paid is through ads.